"Street Critique"- Hilary Kramer, Personal Finance Editor at AOL
Wednesday, October 17, 2007PAUL KANGAS: Tonight's "Street Critique" guest has brought our viewers several stock picks in recent weeks, all designed to play on the momentum associated with last month's cut in interest rates. So we thought we'd take a look at how her picks are doing. She's Hilary Kramer, personal finance editor at AOL and the author of the book entitled, "Ahead of the Curve." And Hilary, welcome back to NBR.
HILARY KRAMER, PERSONAL FINANCE EDITOR, AOL: Thank you, Paul.
KANGAS: In the last couple of months, you've said that you were cautious on the market, but that viewers should not fight the Fed and the market momentum associated with the September rate cut. Let's look at how those picks have played out. On August 22, you had some stocks that you said had been beaten down unfairly and were poised for the upside and they started out with Metallico (MEA) which is up 63.8 percent, then Comverge (COMV) up nearly 47 percent, Tetra Tech (TTEK) with a gain of about 8 percent and ASE Test Limited (ASTSF) adding 26 1/4 percent, all strong gains. Are you staying with these stocks are taking some profits?
KRAMER: It's time to take profit. Take some money off the table on all on these (INAUDIBLE). I love Metallico, MEA. I still own and hold some Metallico. Look at how fast it's gone up, 64 percent. Take some money and put it aside.
KANGAS: OK and now to those stocks that we've had on the board, only Metallico is the one you own now?
KRAMER: Yes.
KANGAS: Now, getting back to September 5, you liked Casella Waste (CWST) and it's up 30 percent and FPL (FPL) boosted minor gains in comparison also and then Veolia Environmental (VE) was up almost 18 percent. Are you taking profits here or sticking with these?
KRAMER: All four of the stocks, especially Casella, Veolia, stick with them. There's a lot more upside to go. Casella I see it going to 20 and Waste Management (WMI), FPL, those are nice safety stocks (INAUDIBLE) conservative and want some upside but I own all four of those stocks.
KANGAS: Ok. Then the day after the Fed cut rates by a half percentage point, you gave us some bigger cap stocks poised to rise on that Fed move. Baidu.com (BIDU) up 14.6 percent, your only loser, China Medical Technologies (CMED), down a whole 7/10 of 1 percent. First Solar (FSLR) did considerably better, up nearly 39 percent and then Google (GOOG), you think Google can still push higher? It's up almost 16 percent from when you recommended it.
KRAMER: OK, Paul, Google going to 700, there's still strength behind Google. There's buyers. There's real volume there, but all of these stocks are momentum plays. Everyone should be careful and keep in mind that China especially, Baidu, although I loved it, those that got in made some money, be careful, pull your money off the table and wait for a nice rainy day when these stocks go on sale and can go back into the market.
KANGAS: Good advice. Hilary, what are you seeing in the current market? What lies ahead now?
KRAMER: Well, we have strength in technology, but the stock market itself has gone up too fast, too high and everyone should be careful and mindful of the fact that there are some dangers ahead, namely that oil is looking like it's heading to $100 a barrel and it hasn't yet reflected in the gas pump. Once it does, it's going to be a shock to our system and to the consumer and then, of course, you have real estate groups. You have the financial money centers, regional banks, the mortgage plays. They're weak and there could be some contagion to the stock market. So although we have a strong economy, strong market, you got to be careful. And, again, save your money for a day when these stocks go on sale and you can pick them up cheap.
KANGAS: Fair enough. Hilary, we know what you own over the stocks mentioned tonight. But are you short any of those stocks?
KRAMER: I'm not short any of these positions.
KANGAS: Want to thank you for being with us, once again.
KRAMER: Thank you, Paul.
KANGAS: My guest, Hilary Kramer, author of "Ahead of the Curve."
